Financial and
ESG report 2020

Additional information and other essential events between the date, for which the financial report was prepared and its publication date

Mortgage Bank

Mortgage loans are an important element of the Bank’s retail business. Therefore, in June 2018, the Bank submitted a request to the Polish Financial Supervision Authority (“PFSA”) for permission to establish a mortgage bank. On June 16, 2020, PFSA issued a permission to establish a mortgage bank under the name of “Millennium Bank Hipoteczny Spółka Akcyjna” with its head office in Warsaw. Shareholders’ equity of Millennium Bank Hipoteczny Spółka Akcyjna shall be PLN 40,000,000 and has been wholly covered by Bank Millennium S.A. with a cash contribution of PLN 120,000,000. Registered ordinary shares in the number of 40,000,000 with nominal value of PLN 1 per share have been taken-up by the Bank with the issue price of PLN 3 per share. The new Bank is to provide medium and long-term financing through the issuance of covered bonds to support residential mortgage lending business.

Group layoffs (as part of the restructuring process after the merger with Euro Bank)

In the period between February 1 and March 31, 2020, approximately 211 employees were made redundant. The costs of severance pay and damages in this respect did not exceed PLN 13 million. The layoffs resulted from mergers of organizational structures, namely: liquidation of duplicate organizational units, standardization and optimization of processes. The Bank’s branches were also reviewed – based on the conducted economic and market analyzes, decisions were made to close some of them. The rules for carrying out these layoffs, the criteria and the amount of severance pay have been developed and agreed with the trade unions operating at the Bank.

There were no significant events affecting the financial statements and future results of the Group between the date on which the report was prepared and the date of its publication.

Date Name and surname Position/Function Signature
22.02.2021 Joao Bras Jorge Chairman of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Fernando Bicho Deputy Chairman of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Wojciech Haase Member of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Andrzej Gliński Member of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Wojciech Rybak Member of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Antonio Pinto Junior Member of
the Management Board
Signed by a qualified electronic signature
22.02.2021 Jarosław Hermann Member of
the Management Board
Signed by a qualified electronic signature

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